Amazon to Develop Own Delivery Services in L.A.

Seattle-based Amazon Inc. is planning to pilot its own delivery service for businesses in Los Angeles.

The news, first reported in the Wall Street Journal, will be called “Shipping with Amazon,” or SWA, and is being rolled out over the next few weeks. The move sees the tech company coming closer to creating its own delivery network.

The service will see packages picked up from businesses and shipped to consumers. The latest step will position Amazon to compete directly with current logistics partners including United Parcel Service Inc. and FedEx Corp.

The company’s shipping cost was $7.6 billion in fourth quarter 2017, an increase of 30 percent from $5.6 billion for the same period a year before. Amazon’s sales increased 38 percent to $60.5 billion in fourth quarter 2017, compared with $43.7 billion for fourth quarter 2016, according to a Securities and Exchange Commission filing.

Manufacturing and trade reporter Shwanika Narayan can be reached at snarayan@labusinessjournal.com or 323-556-8351. Follow her on Twitter @shwanika.